Articles by William J. Luther
What are the merits of returning to the gold standard? Is such a system feasible today?
Recognizing the existence of these lags does not imply that the Fed is incapable of reducing the depth and duration of recessions. However, it should instill a sense of humility in those of us considering what the Fed might accomplish in practice.
Efforts to change the composition of payments to employees, like those suggested by Sanders and championed by many on the left, are likely to leave the intended beneficiaries worse off. Such a policy means workers must choose between holding an under-diversified portfolio or incurring higher costs to achieve the appropriate mix of assets given their unique circumstances.